Rok Resources, Inc. Class B · TSXV:ROK
Rok Resources, Inc. Class B — Investor Presentation (August 2023)
28 slides from Rok Resources, Inc. Class B's investor presentation, August 2023
Slide 1: Investor Presentation August 2023
INVESTOR PRESENTATION August 2023 A growth-oriented oil & gas company well-positioned to capitalize on the current commodity cycle
Slide 2: Company Profile | Snapshot
Company Profile | Snapshot ~4,5001 ~$38.51 ~$2.11,2 ~$16.61,3 2023E Exit 2023E NOI 2023E Free Funds Flow 2023E Exit Net Debt Production (boe/d) ($ million) ($ million) ($ million) Recent Announcements Production Profile (as at June 30, 2023) Kaybob ~3,300 Strategic Asset Lithium 43-101 Term Debt ~1,
Slide 3: Experienced Leadership Team
Experienced Leadership Team Co-founder of ROK Resources Inc., former President and CEO of Villanova 4 Oil Corp., Villanova Cam Taylor Oil Corp. & Villanova Resources Inc. Mr. Taylor is a geoscientist with over 30 years of experience in Chairman & oil & gas exploration and development. Since graduati
Slide 4: Solid Track Record of Execution and Value Creation
Solid Track Record of Execution and Value Creation Management brings a solid track record of execution and value creation through the development, from infancy to the successful divestitures, of four successive companies generating shareholder returns of 3x Previous Experience 4 Successive Company E
Slide 5: Corporate Milestones
Corporate Milestones AVERAGE 2023 EXIT RATE OF 3,054 4,500 boe/d boe/d Q1 2022 Q2 2022 Q3 2022 Q4 2022 H1 2023 H2 2023 Closed Results beat Drilled the best SE Sask. acquisition Strategic asset Execute organic transformational estimates well in New $75 million divestiture and drilling program acquisi
Slide 6: Company Profile | Capitalization
Company Profile | Capitalization Capitalization Summary 50-day Moving Average (August 11, 2023) $0.32 TSXV: ROK Basic Shares 214.9mm Management & Board Public Warrants1 (ROK.WT) (Strike Price $0.25) 113.1mm ~17% Non-Public Warrants (Average Strike Price $0.18) 1.5mm Options (Average Strike Price $0.
Slide 7: Company Profile | Corporate Guidance
Company Profile | Corporate Guidance ACTUALS ACTUALS US$80/B WTI US$80/B WTI US$76/B WTI Q1/20231 Q2/20231,3 Q3/20232,3 Q4/20232 Total 20232 Average Production 4,140 boe/d 3,297 boe/d ~3,475 boe/d ~4,290 boe/d ~3,800 boe/d Net Operating Income (NOI)4 $13.3mm $6.9mm $8.2mm $10.0mm $38.5mm Cash Flow F
Slide 8: Locations | Asset Overview
Locations | Asset Overview ROK Lands In 2023, ROK will focus on the development of core properties in SE Saskatchewan, including conventional Frobisher and unconventional Midale prospects 8 TSX.V: ROK
Slide 9: Locations | High Quality Drilling Inventory
Locations | High Quality Drilling Inventory Target Gross # Booked Core Area1 Formations Sections Avg WI% Drilling Locations1,2,3 Pinto/Alameda/Oxbow Frobisher & Midale 45 85% 74 Glen Ewen/Florence Frobisher & Midale 26 85% 15 Benson/Steelman Frobisher & Midale 16 90% 4 Workman/Gainsborough Frobisher
Slide 10: Southeast SK Assets | Frobisher
Southeast SK Assets | Frobisher Analogous Frobisher Production vs. Reserve & Forecast Curves US$70 WTI / US$80 WTI / US$90 WTI / $3 AECO $3 AECO $3 AECO Daily Oil Production (Bopd) DCE cost $1.3mm $1.3mm $1.3mm 350 EUR 68 mbbl 68 mbbl 68 mbbl NPV10% $1.2mm $1.8mm $2.4mm 300 Reserves Type Curve IRR (
Slide 11: Southeast SK Assets | Midale
Southeast SK Assets | Midale Analogous Frac'd Midale Production vs. Reserve & Forecast Curves US$70 WTI / US$80 WTI / US$90 WTI / $3 AECO $3 AECO $3 AECO Daily Oil Production (Bopd) DCE cost $1.9mm $1.9mm $1.9mm 300 EUR 75 mbbl 75 mbbl 75 mbbl NPV10% $0.9mm $1.5mm $2.2mm 250 Reserves Type Curve IRR
Slide 12: Opportunistic Use of Leverage
Opportunistic Use of Leverage Debt Facility Comparison ($mm / %) Announced $65mm senior secured loan facility with Monthly Blended Cash Outflows 1 Cost of Debt Q1 2022 Anvil Channel Energy Solutions ("ACES") to fund the milestone acquisition of FCL assets 16% $2.6 $2.5 Announced new debt facility co
Slide 13: Value Proposition | Peer Comparison
Value Proposition | Peer Comparison1,2 Select Domestic Oil Weighted Producers 2023E EV/EBITDA (x) 2023E EV/MBOE/d ($/mboe/d) 6.0x $100.0 5.0x $80.0 4.0x $60.0 3.0x 2.7x $40.0 2.0x $22.5 1.0x $20.0 0.0x - Peer 3 Peer 4 Peer 5 Peer 1 Peer 2 Peer 3 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 2 Peer 6 Peer
Slide 14: Hedging Contracts (Quarterly Summary)
Hedging Contracts (Quarterly Summary)1 WTI Swaps2 Crude Edmonton Light Diff. AECO Swaps3 Propane Swaps Quarter bbl/d US$/bbl bbl/d US$/bbl mmbtu/d US$/mmbtu Gal/d US$/gal Q3-23 1,382 $84.45 1,017 ($4.25) 5,267 $2.13 3,712 $1.01 Q4-23 1,340 $82.07 981 ($4.48) 5,165 $2.48 3,586 $1.02 Q1-24 1,087 $79.7
Slide 15: Lithium Exploration | Overview
Lithium Exploration | Overview ROK’s lithium diversification is a highly opportunistic strategy, with access to Lithium Land Positions untapped lithium properties in Saskatchewan • ROK owns 25% of private corporation Hub City Lithium Corp. Land Positions • Hub City Lithium Corp. has >192k acres of l
Slide 16: Lithium Exploration | Viewfield Project
Lithium Exploration | Viewfield Project Viewfield 2-22-7-9W2 • Drilled and flow tested November/December in 2022 • Tested multiple zone intervals & flow tested >550m3/day with high volume ESP pump • Obtained Li concentrations as high as 259 mg/l • Wymark E/D: 220 – 259 mg/l • Wymark A/B/C: 94 – 167
Slide 17: Lithium Exploration | Mansur Project
Lithium Exploration | Mansur Project Mansur 11-2-9-13W2 Mansur #1 (11-2) • Recompleted and flow tested in 2021 • Tested multiple zone intervals & flow tested >525 m3/day with Mansur #2 (14-36) high volume ESP pump • Obtained Li concentrations as high as 96 mg/l • Wymark A/B: 79-86 mg/l • Wymark E/F:
Slide 18: Catalysts For Growth | Why Invest in ROK Resources
Catalysts For Growth | Why Invest in ROK Resources We have consistently hit our targets and delivered results in line with our long-term strategy. We will continue to work hard to deliver material value to shareholders in 2023 and beyond. Strong Free Proven Substantial Conservative High Quality Long
Slide 19: Analyst Coverage | Independent Research
Analyst Coverage | Independent Research Kirk Wilson, CFA Garett Ursu, CFA Adam Gill Managing Director, Research (Energy) Research Analyst Director, Energy Research [email protected] [email protected] [email protected] Christopher True Bill Newman, CFA Equity Research Analyst Vice P
Slide 20: Appendix
APPENDIX 20 | TSX.V: ROK
Slide 21: Appendix I | Board of Directors
Appendix I | Board of Directors Cam Taylor Chairman & Chief Executive Officer Geoscientist with over 30 years of international O&G experience with Pan Orient Energy, Orion Securities, Jeffrey Chisholm Bow Valley Energy, Canadian Occidental Petroleum (Nexen), PanCanadian Petroleum (Encana) and Niko I
Slide 22: Appendix II | Reserves
Appendix II | Reserves Corporate Reserves Summary (April 1, 2023) PDP PROB 8.5mmboe 5.7mmboe (39%) (27%) Oil Vol. Gas Vol. N G L Vol. Total Vol. Liquids NPV-10% mbbl Mmcf mbbl mboe % $m m PUD+PDNP 7.3mmboe (34%) PDP 2,654 14,834 615 5,741 57% $55 1P 6,963 26,777 1,590 1 3 , 0 16 66% $135 PROB $122mm
Slide 23: Appendix III | Kaybob Assets
Appendix III | Kaybob Assets Kaybob assets offer significant upside potential with rising commodity prices 23 TSX.V: ROK
Slide 24: Appendix IV | Kaybob Cardium
Appendix IV | Kaybob Cardium Analogous Cardium Production vs Reserve & Forecast Curves US$80 WTI / US$90 WTI / US$100 WTI / $3 AECO $3 AECO $3 AECO Daily Oil Production (Bopd) DCE cost $3.2mm $3.2mm $3.2mm 400 EUR 125 mbbl 125 mbbl 125 mbbl 350 NPV10% $2.3mm $3.3mm $4.3mm Reserves Type Curve IRR (B-
Slide 25: Appendix V | Kaybob Montney
Appendix V | Kaybob Montney Analogous Montney Production vs Reserve & Forecast Curves $4/MCF AECO $5/MCF AECO $6/MCF AECO Daily Gas Production (mmcf/d) DCE cost $5.3mm $5.3mm $5.3mm 10,000 EUR 3,500 mmcf 3,500 mmcf 3,500 mmcf 9,000 NPV10% $1.2mm $3.0mm $5.5mm 8,000 Reserves Type Curve IRR (B-tax) 25
Slide 26: Appendix VI | Strategy & Focus
Appendix VI | Strategy & Focus Operational Excellence Superior Risk-Adjusted Optimization of base Returns production through enhanced Multi-year, low-risk development production techniques and drilling inventory underpinned by cost controls strong base production Capital Discipline Accretive Opportu
Slide 27: Disclaimer | General Advisory
Disclaimer | General Advisory This presentation includes information that constitutes “forward-looking information” or “forward-looking statements”. More particularly, this presentation contains statements concerning expectations regarding the successful implementation of drilling activities on asse
Slide 28: ROK Resources Inc. contact details
ROK Resources Inc. 1911 Broad Street Regina, SK S4P 1Y1 Phone: (306) 522-0011 Email: [email protected] Website: www.rokresources.ca